The government has set out a framework for action to support employers in keeping an ageing workforce in employment.
Its action plan, Fuller working lives – A framework for action, found that the UK economy could have been boosted by £18 billion in 2013 if the employment gap between people in their 40s and those between the ages of 50 and the state pension age had been halved.
The action plan includes the launch of a new guidance toolkit for employers to help support older employees in the workplace, such as making changes to working patterns or finding alternative roles for employees with age-related health difficulties.
Other measures and actions set out in the action plan include:
- The extension of the right to request flexible working to all employees, which takes effect on 30 June.
- The appointment of a new Older Workers’ Employment Champion, who will advocate the case for older workers within the business community and wider society.
- The launch of the Health and Work Service, which will give employees with long-term health problems the support they need to stay in or return to work.
- New initiatives to support people combining paid employment with caring responsibilities.
- Greater flexibility to combine pension income with earnings, and therefore plan a gradual retirement.
Steve Webb (pictured), pensions minister, said: “Older employees have a huge amount to bring to any workforce and are a vast untapped talent.
“We are living longer and can expect many more years of healthy life. It’s great news, but it’s something that, as a society and as an economy, we need to respond to.
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“The business case is compelling and the research we are launching today sets out clearly the advantages for individuals, employers and the state.
“As part of building a fairer society, I am determined that we boost our support for older staff and help employers challenge outdated perceptions to see the real strengths of this important section of the workforce.”
The ‘Framework for Action’ is a useful approach in bringing together the various aspects of how employers and government can help people navigate the changes in their personal circumstances as they progress through life and employment.
[Employers Network for Equality and Inclusion] are delighted work with other leading bodies on the development of a new guidance toolkit for employers. Older workers are an untapped resource with significant skills and experience which is vital to the UK’s future economic growth.
There is growing recognition of the value of older workers, yet many employers aren’t addressing their needs in the workplace – especially when it comes to employee benefits packages. As the number of older workers will, indeed must, grow over the next 20 years, this is an issue employers simply cannot ignore.
Our research shows that support in old age and ill health become increasingly important to us as we get older, and have a tangible impact on our decision to join or stay with a company. Yet many employers haven’t kept pace with demographic changes, leaving older workers more financially exposed now than 30 years ago.
While pensions-auto-enrolment will help people to plan for retirement, employers looking to attract and retain older workers should also address the increased likelihood of ill health and help plan for the social care needed later in life. Income Protection, for example, provides a financial back-up plan for workers who go on long-term sick leave and comes with rehabilitation services to support them if they are able to return to work.